The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1887-06-20
THE LATE WHEAT CORNER. }ji.
Complications Growing Out Of it-Sf00, 900
MIA liFI5J Draft Stopped, III L. al

GlGljP- Draft Stopped. i,s,ll
CHICAGO, ILL, June lS.-The facts con
cerning the deposit made Wednesday
morning to Kershaw & Co.'s credit at the
American Exchange National Bank be.
came clearer to-day on account OF legal
proceedings begun agalnss the Fidelity
National Of Cincinnati, and tho Chemical
National, Of New York, as an indirect 70.
suit Of that and another similar deposit
the came morning at the Bank Of Mon.
tsoal. The iacts are learned, on good au.
thority, to be as follows: We'd.
desday morning Y Mr.. Joe wilt.
shire came 10 Chicago with 5000, 600
worth Of drafts issued by tho Fidelity Ma.
tional Of Cincinnati, Of which $20O. 600
was in Chicago exchange and 100000
In New York exchange. At tho Amori.
can Exchange Bank he placed tho 5000.
900 In drafts on Chicago banks, and 5000.
0o0 Of tho New York exchange, reeueating
thst IL be credited to Kerphaw. But fhs
bank officers, 1t Is said, discovered that
only $500, 900 had been Issued 10 Kershaw
and indolsed by him, and that the re-.
naming $780, 900 was In the form Of a
draft iBaued directly to American yEx.
change Bank itself without mention Of
hefshaw'a name on account. On being
asked to explain this 1t Is said that wilt.
shire said that 1t WIS merely difference
In form, and that the Fidelity had intend
ed all the money Tor Kershaws account
The American Exchange. however, refused
such broad Interpretation OF the drait.
and at once wired the Fidelity for IN ex.
planation, meantime giving Kerohaw cred.
1t lor the $780, ,000 properly issued to his
order. The Fidelity Ia understood TO
have telegraphed back that tho puzzlinp
SlG0. 600 draft was sent the American Ex.
change ION account" as II tho Fidelity
wished an available balance in Chicago.
or possibly thought itself debtor 10 tho
American Exchange Bank. So Mr.. Ker.
shaw was allowed to check only $4,000
out OF the last named bank. The remain.
ing 100000 Of the 100000 brought by
MIR. Wilthire was deposited to MIR, Ker.
shaw'o credi. in the Bank OF Montreal,
This money was in drafts by tho Fidelity
on the Chemical National, OF New York.
It was possibly checked out by Kershaw
In settlement Of the claims Of creditors,
which have not yet been made public. 5
!i1aF PAYMENT REFUSED. ii
So much is known OF the amount and
nature Of Wednesday mornings deposits,
but for the banks concerned more inter
estipg developments were forthcoming.
for the Chemical National, Of New YORK,
has refused to make payments on the
drafts, telesraphing to the American Ex.
change and Bank OF Montreal in thia city
that payment is stopped. This action
BY the Chemical means a loss of SlOO 600
by the American Exchange and $2OO.O0O
BY the Bank of Montreal, us the latter let
keIshaw check out that sum, unless
they can recover by legal proceed
ines from the Cincinnati i or New
York bank. An officer OF the Amer
lean Exchange Bank said Z this
afternoon: ut is true TINT the Chemical
has not paid the draft which We sent them
Wednesday. They wired US that pay
ment wss stopped. We have caused suit
for damages to be- entered against the
Chemical and also against the Fidelity, OF
CINCINNATI. We feel secure about that
500. 900, for the Chemical and Fidelity
are hotb liable. The draft was properly
ieaued and duly authorised by the Fideli-
ty. Tho Chemical, by stopping payment
on the Fidelity order, clearly lays itself
open to claim for damages." ~
Bank Of Montreal people were "too
busy to talk,". but as they handled the
drafts they hays Joined with the, ,Aueri-
can Exchange in inatructing counsel to
push claims against tho Chemical and Fl
deity National Banks Z. =3t17 s :.
v The 100000 draft 10 the order Of the
American Exchange Bank seems to re-
quirs more explanation than 1t has rs.
ceived. AS the story is row understood,
it looks es If somehody had planned to
make the American Exchange m unwill.
ing creditor OF Mr.. Kershaw to the
amount 100000. Why uhould the Fidel-
ity, without instructions, intrust to Mr.
Wilthire's care check to the order Of the
Chicago bank? The courts may throw
some light gnon this as we'll as upon
other matters, Therp vas a rlmor that
Mr.. Irwin had resigned the Presidency OF
the American Exchange Bank. ny MIR.
Irwin said he had not resigned, and had
net hsen asked, to- The position, how.
ever, was ono 10, yhich ho did not care.
Mr.. De War, the Yice-freaident snd Man
ager, will be on duty Monday.
a'GgPg 49,
r WA {. e